Owning a home in Miami not a myth despite inflation, says Bank of America
Miami, May 23 (EFE).- Rising mortgage and rent rates in Miami seem to distance the Hispanic community from the dream of owning a home, a notion that Bank of America hopes to “demystify” during a workshop it will hold in collaboration with Agencia EFE on June 3 in this U.S. city.
According to the Bank of America Institute, Southern cities like Miami, Tampa, Atlanta, and the Southwestern city of Phoenix are experiencing more significant real estate surges than their Northeastern (Boston, New York) and Western (San Francisco and Los Angeles) counterparts.
The report notes that prospective homebuyers in Miami are 77% hesitant to purchase due to the city’s high housing prices, compared to 56% nationwide.
Interestingly, 28% of millennials are less likely to utilize public or private grants for closing costs, compared to 37% of their peers nationwide. The primary motivations to buy homes for this segment are to settle down with their growing family and start building equity, according to the Bank of America’s 2022 Homebuyer Insights Report.
The banking institution asserts that attendees at the Miami Homebuyer Workshop will learn more about the power of the Hispanic community in the country, mainly through “the creation of generational wealth with homeownership.”
The homeownership rate among Hispanics in the United States rose to 48.5% in 2021 compared to 47.5% two years prior, according to a report from the National Association of Hispanic Real Estate Professionals (NAHREP).
THE HOUSING BOOM IN THE SUN BELT
Counties and cities in the Sun Belt region, comprising the southern states, have experienced a larger real estate boom that has increased rents and mortgages, notes the Bank of America Institute.
The Institute highlights that average rent payments in Miami increased 16% year-over-year during the six months leading up to February 2023, and average mortgage payments rose 15% over the same period.
Bank of America recognizes that several factors, such as affordability-driven internal migration, above-average job gains, and an increasing proportion of higher-paying jobs, contribute to this housing boom in the Sun Belt, which houses around 50% of the national population.
The workshop, which is to be held during National Homeownership Month, will provide guidance and resources to become homeowners, review credit scores, and decide how much they can comfortably afford.
Participants will also learn about the steps to become homebuyers and understand when to choose pre-qualification versus pre-approval, as well as types of mortgage programs, including a 3% down payment mortgage with lower-cost insurance.
The workshop, taking place at Miami Dade College’s North Campus at 9:30 a.m. local time on June 3, is part of Bank of America’s Community Homeownership Commitment, which seeks to assist first-time homebuyers and other eligible buyers in communities across the country.
During the event, there will be a conversation with Joe Velázquez, senior vice president of production at Bank of America, and Justine Jiménez-García, real estate broker, national advisor for NAHREP, and incoming president of the Miami Association of Realtors.
The conversation will be moderated by former CNN en Español presenter Glenda Umaña. EFE